Monarch, a personal finance startup, has successfully secured $75 million in funding aimed at boosting its subscriber growth following the recent closure of budgeting app Mint, as reported by Finance Newso.
This fundraising effort stands out as one of the largest for a U.S.-based consumer fintech in 2023, valuing the San Francisco startup at $850 million, revealed co-founder Val Agostino. The Series B funding round was spearheaded by Forerunner Ventures and FPV Ventures.
Monarch aspires to create a comprehensive mobile application for monitoring spending, investments, and financial goals. The personal finance sector was predominantly ruled by Mint, an innovator in online finance acquired by Intuit in 2009. However, after years of stagnation, Intuit decided to discontinue the service in early 2024.
“Managing your money is one of the significant unresolved issues in consumer technology,” said Agostino during a recent Zoom conversation. “The way American families handle their finances remains largely unchanged since the late 90s, though today it’s done via smartphones instead of in-person banking.”
Founded in 2018, Monarch saw its subscriber count increase by 20 times in the year following Intuit’s announcement to shutter Mint, as users sought alternative solutions, according to Agostino.
Unlike Mint, which operated at no cost to users, Monarch’s revenue model is based on paid subscriptions, which allows the company to avoid relying on advertising or selling user data, a strategy informed by Agostino’s experience as an early product manager at Mint.
The startup’s goal is to streamline the account setup and expense tracking processes, surpassing the functionalities of various free tools or banking app integrations, according to FPV co-founder Wesley Chan.
Chan expressed confidence in Monarch’s approach, likening it to his previous investment in graphic design platform Canva, noting that Agostino is addressing a challenging market with a novel philosophy.
“What Val is creating is the next evolution in financial planning,” Chan stated. “It’s seamless, user-friendly, and easily shareable, characteristics that have been lacking until now. This is why the growth is rapid and engagement levels are encouraging.”
This funding round arrives during a slow period for consumer-oriented fintechs in the U.S. Monarch is among the rare firms to secure a significant Series B this year, with other examples including Felix, a money remittance service targeting Latino immigrants.
The fintech sector garnered $1.9 billion in venture capital during the first quarter, reflecting a 38% drop from the previous quarter, highlighting a growing caution among investors regarding direct-to-consumer models, according to a recent PitchBook report. The majority of the capital raised during this period was funneled into enterprise-level fintech companies.
“The industry is currently experiencing a difficult phase as it recovers from the overzealous investments of 2021 that resulted in many startups making little progress, impacting the entire sector negatively,” Chan remarked. “I thrive in challenging environments.”
